It might not be needed to be added as an asset for several reasons, one of which is the nature of non-profits.  This is a question for your accountant.  At $125/hr for 8 hours for 2 years - that's about $100,000.  you also said he "usually" charges $125/hr.  Did he in fact charge the church?  Again - speak with your accountant about this.

As it states we are a for profit company so there are non-profit rules do not apply here.

The organ was only a pile of pipes and wire total dollar amount would have been scrap value.  It is now a 16 rank organ with a value of $26,000 per rank when working, so it has become a $416,000 asset that needs to be added to the books.

$80,000 - $100,000 is fair market for his work on the organ and as stated he donated his time so he did not charge the company.  

Again we are not a church, we are a for profit company.

Apologies for missing the for profit line.  When the church was purchased, the entire purchase price would have been allocated between building, land, equipment, etc. etc.  None of the purchase price was allocated to the organ.  The potential asset value is only the cost of the labour and materials for the major repair.  Since some of the costs presumably have already been expensed in a prior fiscal, an adjustment could require a re-statement of the prior years statements a tax return.  I recommend that you prepare a schedule of teh costs incurred in each fiscal year and submit it to your accountants for their review.

Thank you,

I will sit down and try to see what I can figure out cost wise over the past 5 years.

FYI, the gentleman's time that he did not charge the church for is not an expense and will not be considered in the asset value.  Only actual expenses laid out count.  The asset value will matter for funding at which time it would require an appraisal; or when/if the organ/building is sold - the difference on the sale over the actual cost would be a gain on the sale.  Other than that, if you need to report to a board, it can only be a note to the reports.